Study Finds That There is No Correlation Between Expenditure With a Supplier and Its Cost of Impact Upon Supply Disruption

Until now, companies and their executives have operated under the assumption that those suppliers with which they spend the most money are those which would impact their business the most if the supplies were disrupted. However, a new study conducted by MIT found no correlation between how much a company spends with any given supplier and how much that supplier’s inability to deliver supplies affected the company’s business. The new calculations were used to test Ford Motor Company’s supply chain. The results of the study are to be published in the January-February edition of The Harvard Review.This article is for Premium Members only. Please login below to read the rest of this article.